55-525.30 - (Effective October 1, 2010) Settlement agent registration requirements and compliance with unauthorized practice of law guidelines.
§ 55-525.30. (Effective October 1, 2010) Settlement agent registrationrequirements and compliance with unauthorized practice of law guidelines.
A. Every settlement agent subject to the provisions of this chapter shall beregistered as such with the appropriate licensing authority. In conjunctiontherewith, settlement agents shall furnish (i) their names, businessaddresses, and telephone numbers and (ii) such other information as may berequired. Each such registration (a) shall be accompanied by a fee not toexceed $100, and (b) shall be renewed at least biennially thereafter. Whenthe registration of a settlement agent is renewed, the appropriate authorityshall notify the registrant of the provisions of § 17.1-223.
B. The Virginia State Bar, in consultation with the Commission and theVirginia Real Estate Board, shall adopt regulations establishing guidelinesfor settlement agents designed to assist them in avoiding and preventing theunauthorized practice of law in conjunction with providing escrow, closing,and settlement services. Such guidelines shall be furnished by theappropriate licensing authority to (i) each settlement agent at the time ofregistration and any renewal thereof, (ii) state and federal agencies thatregulate financial institutions, and (iii) members of the general public uponrequest. Such guidelines shall also be furnished by settlement agents to anyparty to a real estate transaction in which such agents are providing escrow,closing, or settlement services, upon request.
C. The Virginia State Bar shall receive complaints concerning settlementagent or financial institution noncompliance with the guidelines establishedpursuant to subsection B and shall (i) investigate the same to the extentthey concern the unauthorized practice of law or any other matter within itsjurisdiction, and (ii) refer all other matters or allegations to theappropriate licensing authority. The willful failure of any settlement agentto comply with the guidelines shall be considered a violation of thischapter, and such agent shall be subject to a penalty of up to $5,000 foreach such failure as the Virginia State Bar may determine.
(1997, c. 716, §§ 6.1-2.25, 6.1-2.26; 2004, cc. 336, 597; 2009, c. 256; 2010,c. 794.)